Healthcare Services Group Beats on Revenue, Matches Expectations on EPS

Healthcare Services Group (Nasdaq: HCSG  ) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Healthcare Services Group beat expectations on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.

Margins shrank across the board.

Revenue details
Healthcare Services Group logged revenue of $250.2 million. The five analysts polled by S&P Capital IQ hoped for revenue of $223.6 million. Sales were 24% higher than the prior-year quarter's $202.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.16. The six earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. GAAP EPS of $0.16 for Q4 were 23% higher than the prior-year quarter's $0.13 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 13.2%, 120 basis points worse than the prior-year quarter. Operating margin was 5.7%, 90 basis points worse than the prior-year quarter. Net margin was 4.2%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $253.0 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $1.04 billion. The average EPS estimate is $0.70.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 250 members out of 268 rating the stock outperform, and 18 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Healthcare Services Group a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Healthcare Services Group is outperform, with an average price target of $18.67.

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